Student debt is a massive issue in today's society. It seems like everyone has student loans to pay back, and the debt owed by graduates only continues to grow. But what happens to this debt when a couple decides to divorce? This can be a complicated question, but some answers can help explain this issue. Rozin | Golinder Law can help you take a closer look at student debt and divorce property division.
Who is Responsible?
When a couple with student debt decides to divorce, they first need to figure out who will be responsible for paying off the debt. This can be decided in several ways, but it's essential to come to an agreement that both parties are happy with. If one person took out the loans and the other person was unaware of them, or it was before the marriage, then it's likely that the person who took out the loans will be responsible for paying them back. However, if both parties were aware of the loans and agreed to take them out together, then both parties may be responsible for paying them back.
How to Arrange Payments?
Once you've figured out who will be responsible for paying off the student debt, you need to decide how the debt will be paid off. There are a few different options here, and it's important to consider them before deciding. You can attempt negotiation with the student loan company to get a lower interest rate or monthly payment amount. Or, you can set up a repayment plan where each person pays their share of the debt monthly.
Attorneys Can Help
Whatever you decide, it's essential to put the agreement in writing so there is no confusion later. Our blog can help explain student debt and divorce property division in more detail, so be sure to check it out! Rozin | Golinder Law can also help you with any other questions about student loans or divorce.
To further discuss the property or debt division process with an attorney, call us at (732) 810-0034 or visit us online.